Appraisal Econometrics for Proposed Transport Corridors : Optimal Placement, Intervention Design, and Wider Economic Benefits
Transport corridors to stimulate regional integration and trade have become a popular development tool. But when they fail to generate the expected wider economic benefits, they can become wasteful or unequitable investments. This paper evaluates t...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/247241513018767338/Appraisal-econometrics-for-proposed-transport-corridors-optimal-placement-intervention-design-and-wider-economic-benefits http://hdl.handle.net/10986/29005 |
| Summary: | Transport corridors to stimulate
regional integration and trade have become a popular
development tool. But when they fail to generate the
expected wider economic benefits, they can become wasteful
or unequitable investments. This paper evaluates the
relative strengths and weaknesses of econometric methods as
applied today to appraise the proposed placement of
transport corridors and the project design to distribute
benefits more widely; the future potential of these methods;
and an emerging synthesis in some recent studies. The review
focuses on network, reduced-form, and structural (general
equilibrium) econometrics. At the current juncture, from the
policy-making perspective, combining network econometrics
based on the notion of centrality with reduced-form
regressions comprising interactive effects could be the most
practical approach. Future research could focus on advancing
structural general equilibrium econometrics to cover
multiple markets together with network econometrics to
consider the interaction of heterogeneous agents. |
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